The Indian rupee opened 40 paise weaker at 94.88 against the U.S. dollar on Monday, 11 May, pressured by a sharp rise in crude oil prices amid fading hopes of a swift resolution to the US-Iran conflict.
Oil prices surged, with Brent crude climbing over 3% to $104.50 per barrel, after Donald Trump termed Iran’s response to a US peace proposal as “unacceptable” on Sunday.
According to a Reuters report, Iran’s proposal called for an end to hostilities across all fronts, lifting of sanctions on Tehran, reparations, and recognition of its control over the Strait of Hormuz—demands that have added uncertainty to ongoing negotiations.
(more to come)